Middle East Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2025 Update

The BNPL payment market in Middle East is expected to grow by 19.4% on annual basis to reach US$5.79 billion in 2025.

The BNPL market in the region experienced robust growth during 2021-2024, achieving a CAGR of 28.8%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 15.2% during 2025-2030. By the end of 2030, the BNPL sector is projected to expand from its 2024 value of USD 4.85 billion to approximately USD 11.74 billion.

This report provides a detailed data-centric analysis of the Buy Now Pay Later (BNPL) industry in Middle East, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at the regional and country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunities by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spending dynamics. KPIs in both value and volume terms help in getting an in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

This title is a bundled offering combining 4 reports, covering regional insights along with data-centric analysis at regional and country level:

1. Middle East Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
2. Israel Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
3. Saudi Arabia Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook
4. United Arab Emirates Buy Now Pay Later Business and Investment Opportunities (2021-2030) Databook

Key Insights

Expansion of BNPL Market with Accelerated Adoption

• The BNPL market in the Middle East has been expanding rapidly, driven by increased e-commerce activity and consumer preference for flexible payment options. Providers such as Tabby and Tamara have witnessed significant growth, particularly in the UAE and Saudi Arabia.
• Strong e-commerce growth, supported by platforms such as Noon and Amazon MENA, has driven demand for BNPL services. Additionally, younger consumers, accustomed to digital solutions, are seeking alternatives to traditional credit.
• BNPL adoption is likely to accelerate, with continued innovation and service offerings expanding across various consumer segments. However, increased regulatory oversight may influence market entry strategies for new providers.

Strategic Partnerships Enhancing BNPL Reach

• BNPL providers are forming strategic partnerships with retailers, e-commerce platforms, and financial institutions. For example, UAE-based BNPL provider Postpay partnered with the Commercial Bank of Dubai to expand its product offerings.
• These collaborations aim to leverage established business networks and customer trust to scale operations rapidly. Retailers are adopting BNPL to increase sales conversions and improve customer loyalty.
• More partnerships are expected as BNPL providers seek to diversify their services. This could lead to deeper integration across retail and non-retail sectors, enhancing consumer access to flexible payment options.

Growing Regulatory Focus on BNPL Operations

• Regulatory authorities in the Middle East, such as the Saudi Central Bank, have increased scrutiny of BNPL services to ensure consumer protection and financial stability. Guidelines introduced in Saudi Arabia in 2023 require transparency in lending practices and customer communication.
• Regulators are aiming to balance market growth with financial stability, ensuring that BNPL services do not lead to excessive consumer debt. Increasing adoption rates have prompted concerns about responsible lending.
• Providers will need to enhance compliance frameworks and transparency measures. Regulatory alignment will encourage long-term stability in the sector, though it may pose challenges for smaller players with limited resources.

Integration with Digital and Retail Ecosystems

• BNPL is being integrated into super apps and e-commerce platforms. Tabby, for instance, partnered with the Apparel Group to provide installment payment options across both online and in-store transactions in key markets.
• Consumers increasingly prefer platforms that offer multiple services in one ecosystem. Retailers and fintech firms are responding by embedding BNPL solutions directly into their customer experience workflows.
• Enhanced integration with digital platforms will improve user experience and broaden BNPL adoption. As super apps consolidate more services, BNPL providers will innovate to maintain competitiveness within these platforms.

Competitive Intensity and Current Market Landscape

• Tabby (UAE & Saudi Arabia): The insight correctly identifies Tabby as a leading BNPL provider in the region. Notably, in October 2023, Tabby raised $200 million in a Series D funding round, achieving a valuation of $1.5 billion.
• Tamara (Saudi Arabia): The insight mentions Tamara's partnerships with brands such as Noon and Jarir. However, no recent information confirms the launch of BNPL services specifically for healthcare, education, and travel expenses.
• Spotii (UAE): The insight states that Spotii was acquired by Zip Co. (Australia) and operates in the UAE and Saudi Arabia. However, no recent information confirms its focus on fashion, electronics, and lifestyle segments or its integration with global BNPL ecosystems.
• Postpay (UAE): The insight describes Postpay as a growing BNPL fintech with collaborations with regional and international brands. However, no recent information confirms its emphasis on a seamless user experience and a strong merchant network.

Recent Developments and Strategic Moves

• Tabby's Expansion: The insight correctly notes Tabby's significant funding and valuation. Additionally, Tabby has expanded its product portfolio to include a new card offering, a subscription program, buyer protection, and extended payment terms for its BNPL services.
• Tamara's Service Diversification: While the insight suggests that Tamara has launched BNPL services for sectors like healthcare, education, and travel, no recent information confirms these specific expansions.
• Spotii's Integration Efforts: The insight claims that Spotii has enhanced its BNPL infrastructure by integrating with digital wallets and local payment providers. However, no recent information confirms these specific integration efforts.
• Noon Pay's BNPL Feature: The insight mentions that it introduced its BNPL feature, directly competing with established players. However, no recent information confirms this development.

Regulatory Developments

• Saudi Arabia: The Saudi Central Bank (SAMA) introduced regulations in December 2023 requiring BNPL providers to obtain licenses and comply with specific guidelines. These regulations aim to promote transparency and prevent excessive consumer debt.
• United Arab Emirates: In early 2024, the Central Bank of the UAE issued guidelines mandating that short-term credit, including BNPL services, can only be provided by entities acting as agents of licensed banks or finance companies, subject to approval. This move seeks to enhance consumer protection and financial stability.

Future Competitive Dynamics (Next 2-4 Years)

• Sectoral Expansion: The BNPL market in the Middle East is expected to diversify beyond retail into sectors such as healthcare, automotive, and education, driven by consumer demand for flexible payment options.
• Technological Innovation: Providers will likely invest in AI-driven credit scoring and blockchain-based payment security to enhance BNPL adoption and improve customer experience.
• Cross-Border Growth: Companies are anticipated to pursue regional expansion, forming partnerships with banks and regulators to facilitate seamless cross-border BNPL transactions.
• Industry Consolidation: As regulatory compliance becomes more stringent, smaller players may merge with larger fintech firms or traditional banks, leading to a more consolidated market structure

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in through 58 tables and 75 charts. Below is a summary of key market segments.

BNPL Market Size and Spending Pattern

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Revenue Analysis

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income
• Buy Now Pay Later Operational KPIs & Statistics
• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

BNPL by Purpose

• Convenience - Short Term Loans
• Credit - Long Term Loans

BNPL by Business Model

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

BNPL by Merchant Ecosystem

• Open Loop System
• Closed Loop System

BNPL by Distribution Model Analysis

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Buy Now Pay Later Market Share Analysis by Key Players

• BNPL Analysis by Channel
• Online Channel
• POS Channel

Buy Now Pay Later in Retail Shopping: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Home Improvement: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Travel: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Media and Entertainment: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Services: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Automotive: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later in Others: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale
• Monthly Expense Segments

Reasons to buy

• Insights on Strategy & Innovation: Navigate through future direction of the Buy Now Pay Later industry market by understanding strategic initiatives taken by key players to gain market share and innovation.
• In-depth Understanding of BNPL Market Dynamics in the Middle East: Understand emerging opportunities and future direction of the BNPL market, key drivers, and trends. Benefit from a detailed market segmentation with 75+ KPIs.
• Value and Volume KPIs for Accurate Understanding: Value and volume key performance indicators (KPIs) help in developing an accurate understanding of market dynamics.
• Competitive Landscape: Get a snapshot of competitive landscape in BNPL sector with key players and market share in the Middle East. Formulate your strategy by gaining insights into the current structure of the market.
• Develop Strategies to Gain Market Share: Create and fine tune your targeting strategy in the BNPL sector, identify growth categories and target specific segments across the value chain; evaluate important trends and risks unique to your market.
• Deeper Understanding of Consumer Behaviour: Increase ROI by understanding how consumer attitudes and behaviours are evolving. Get a detailed view on retail spending dynamics across consumer segments.